Modern Marketing Practices

BBA Semester-4
Assignment-1

Mentor- Meera Vithlani

 Topic: -

Market Segmentation

Volkswagen India Ltd.

 Introduction to marketing

Marketing is a business function and set of processes involved in

creating, delivering and communicating value to customers, followed
by managing customer relationships resulting in mutual benefits for
the business.

Introduction to market segmentation

A market segment is a group of people who share one or more

common characteristics, lumped together for marketing purposes.
Each market segment is unique and marketers use various criteria to
create a target market for their product or service. Marketing
professional approach each segment differently, after fully
understanding the needs, lifestyle, demographic and personality of the
target consumer.
 Volkswagen India

Founded in 1937 Volkswagen group is the Europe largest

automaker handling 12 brands such as Audi, Seat, Škoda,
Bentely, Porsche, Lamborghini, Scania, Ducati, Man, Bugatti,
Volkswagen and Volkswagen commercial vehicles.
Volkswagen group entered in Indian market in 2001 with the
launch of brands Škoda followed by launch of other brands Audi
and Volkswagen were also launched in India in 2007.
Volkswagen operates globally in 12 independent brands and
segmented its products in developed and emerging economics
e.g., India.
VOLKSWAGEN GROUP BRANDS
 Marketing Strategy of Volkswagen India

They considered demographic, psychographic and geographic

parameters while segmenting their products especially in India.
Volkswagen uses differentiating targeting strategy for offering
products to specified segments of customer in different
geographies.
Volkswagen entered in India customer were perceiving them as
premium luxury brand but slowly after looking at consumer
demands and competition, they started shifting gears and
positioned themselves by launching budget hatchback car
Volkswagen polo which is competing with Maruti Suzuki swift
and mid-premium segments Škoda superb (Sedan) competing
with Honda city respectively.

Products Segments by Volkswagen India

 Segmentation

1. Volkswagen polo (compact car segment)

2. Volkswagen Vento (Midsize Sedan)
3. Other cars like beetle, Passat, Touareg, Phaeton comes under
luxury and premium segment.
4. Bentley, porches and others are ultraluxury and super cars.

Segmentation

Demographic segment
Psychographic segment
Geographical segment
Behavioral segment

Demographical segments
 Age and Life cycle

1. Age: -
These cars are been made for all age groups.
From the age of 20 to 50+ anyone can drive this classic car
(here, classic car word is been used because all the cars that
Volkswagen manufactures, all the design and functions are like
classic cars only even in 2021 for e.g., Volkswagen polo India.
Design is same from 2009 to
2021 and will be same in next years).

2. Life stage: -
These cars are meant for all people who are single or who are
married.

Income and gender

1. Both upper- and middle-class people can afford these cars. Basic
car from polo that costs Rs 11 lakh to super car Porsche cars that
costs Rs 7+ core.
2. Gender: - Different Attitude people and different behavior
people prefer different car. Especially man prefers these cars.

Psychographic Segment

Innovators and Achievers

 1. Innovators: - Most sophisticated, well experienced
consumers.
2. Preference: - Those who prefer the best-in-class product for
endless journey.

Achievers
1. Not all people buy these cars only goal-oriented people buy
these cars.
2. Those who prefer the classic car look in 21st century.

Thinkers and Experiencers

1. Only mature persons and reflective customer buy these cars.

2. Those who prefer value of product.

Experiencers

1. Young and enthusiastic customers.

2. Impulsive consumers.

Behavioral Segments

Needs and Benefits

  Needs: - Safety
Convenient
Luxury
Reliability
Sense of Driving.
Classic Drive.

 Benefits: - Speed (Especially in GTI, GT (TSI) GT(TDI) GLE

models)
Classic Drive.

User and Usage

User: - anyone can use these cars whether they are potential users,
first time users, regular users.

Usage: - these cars are meant for all type of usage these cars are
robust and made up of heavy metal and stainless steel these cars give
us life time rust free guarantee and 6-year anti perforation warranty.

Degree of Loyalty

 Hard – Core loyalty

 Stick to same brand at every step.
 Split loyalty
Customer will choose among two main brands only that is
VW or Skoda nothing else.
 Shifting loyalty
Shifts between Brands.

Strength of Volkswagen India

1. The widest brand portfolio among all automotive companies.

2. New “Together-2025” Strategy.
3. Diversification Strategy
4. Synergy between brands.
5. Joint ventures with local Chinese automakers.

Why Volkswagen is best in 21st century

Not as per the whole world but as a customer of Volkswagen cars
what I have experienced is, the first thing I want that is safety not for
me for my family and for all of the people in whole world all wants
safety. In India people are buying cars for showoff nothing else only
30% people of total population thinks about safety while purchasing
car. And in whole world only Volkswagen group is providing the
best-in-class safety in their all cars. Not only in the luxury segment
but in all segments.
Now other points if we see
1. Volkswagen Polo, Vento, Ameo, Virtus these cars convert
ability of potential customers to buy.
2. Volkswagen doesn’t change their designs they just change their
engines options nothing else.
3. Volkswagen is providing E-Vehicles in the whole world, in the
whole world only Volkswagen Golf is in the market that is
designed for petrol, diesel, CNG, hybrid and Electric no other
car in the world except this car.
4. Advance engine options for sophisticated customers.

Volkswagen Car market

Volkswagen Das Auto.

Problems of Volkswagen
As per my opinion there is no problem in the Volkswagen cars. Other
people say that high cost of maintenance but here I want to specify
that other companies call their cars twice a year i.e. at every 6 months
or 5000-10000kms and then the whole cost of service will be just
5000 to 8000 INR only but Volkswagen calls their cars once a year or
every 15000 kms only and then the cost of maintenance will be 10000
to 14000 INR so now please you all tell me that is it a problem of a
company I don’t think so and only Indian people thinks of this. This is
not a problem this is a good point of company and we should
appreciate this.

Yes, there is a problem about the repair of a particular spare part that
cost too much and same cost will be applied as a labor charge.

About Volkswagen
Volkswagen is one of the oldest and most experienced and respected
German carmakers. It has been operating its business operation for a
long period of time in India. Though India has its own car
manufacturing companies such as Maruti Suzuki India ltd Mahindra
cars etc. Still Volkswagen has been properly making its business here
in India.

Conclusion
Today we have discussed all about the market segmentation.
Discussed all about the meaning. And also, we read all about the
particular company in depth. So, by referring this project any one can
understand the concept easily.

By – Shubham S Thaker
BBA Semester 4
On 29-1-2021